Cattle Futures Post Sharp Losses
Sharp losses have developed through morning trade in both live cattle and feeder cattle markets. The inability for outside grain market support to hold is now creating pressure in the livestock futures market.By Rick Kment DTN Analyst
GENERAL COMMENTS:
Cattle futures have posted moderate to strong losses Tuesday morning. The lack of support in the cattle market has been driven by pressure in outside markets. Lean hog futures are mixed at midday with strong deferred contract gains focusing on longer term demand. Corn futures are trading lower in light at midday in active trade. May corn futures are holding 6 cent losses at midday. Stock markets are higher in light trade. The Dow Jones is 98 points higher while Nasdaq is up 26 points.
LIVE CATTLE:
Moderate to strong pressure has developed through the live cattle futures market Tuesday morning. Traders are focusing on the lack of long-term support in the boxed beef values early in the week. There is also additional pressure developing following the lack of outside market support through the morning. April futures continue to hold moderate losses of 40 to 60 cents per cwt while traders look for additional direction in the outside markets. Deferred live cattle futures are holding sharp losses, with buyers are unwilling to step back into the market until there is some underlying support. This support can come from either fundamental support or outside market gains. Cash cattle activity remains quiet with no bids developing. It appears that it will be the end of the week before active trade is seen. Asking prices are developing at $129 to $130 per cwt in the South and $205 and higher in the North. Beef cut-outs at midday are higher, $1.05 per cwt higher (select) and up $1.22 per cwt (choice) with light movement of 70 total loads reported (31 loads of choice cuts, 19 loads of select cuts, 0 loads of trimmings, 19 loads of ground beef).
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http://sweetfutures.com/2013/dtn-midday-comments-on-livestock/
The risk of loss in trading futures and options can be substantial, therefore only genuine "risk" funds should be used in such trading. Futures and options may not be a suitable investment for all individuals and individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. Information herein has been obtained and prepared from sources believed to be reliable; however no guarantee to its accuracy is made. Comments contained in these materials are not intended to be a solicitation to buy or sell any of the commodities mentioned. Past performance is not indicative of future performance results. Opinions expressed herein are the opinions of the author only and not the opinion of any firm the author may be affiliated or associated with.
